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Fears that more on the nation's fiscal woes the government is now proposing cutting the amount it contributes to its health care plan.
For seniors called Medicare Advantage in 2014.
It's not a done deal just yet.
But it took everyone by surprise today including Wall Street health insurance industry taking a huge hit stocks down across the board.
In fact for insurance companies lost a total one point eight billion dollars in market value just today yeah.
Look at how this breaks out Humana as market value dropped by almost a whopping 788.
Million dollars today.
UnitedHealth Group down 676.
Million dollars Cigna by nearly 186.
Million dollars in Aetna.
By about a 164.
If this rate cut really does happen there could be yet another big impact on the industry and overall health care.
Richard Huber is -- former chairman and CEO of Aetna.
-- -- got to talk to on this and you've given me special permission to -- debt -- -- the conversation about how first of all this is going to affect health care.
That is offered.
Well it's going to have an impact not sacrament.
Radically change the way health care is delivered in this country but it will have an impact on one segment particularly with seniors.
And seniors who are seeking the Medicare Advantage program.
Would you really what this is about.
And the market expected.
No particular increase but they didn't expect.
Dick they were really caught off guard when you look at the -- those stocks today this was significant.
And this is just the large health care insurers that are publicly traded and publicly traded on the open market we're the Smart guys how does this affect.
Well I think that the smaller guys is it's a wide diversity some smaller guys don't do don't do Medicare at all -- wouldn't affect them a bit.
But some targeted and it's a major part of their business for them.
It would be a big hit.
Even with the big four if you notice and as you quoted.
The hips were quite different yes man.
Concentrates a great deal on Medicare.
Who -- really took a beating.
You know I ended and -- -- -- -- painless but they weren't anywhere near as a.
A significant cuts there definitely but its it's if you -- still the CEO.
You have handled -- well or witness and even happened would you have negotiated a different -- I would cry they pick up but picked up.
If you don't negotiate with the government -- -- very effectively.
I I think that the industry is trying to.
Get the government to consider.
Not cutting anywhere near as much or maybe not cutting any and all this as you said is not a done deal now it's open for comment.
The market sees it as a real risk and that's why we have two more precedent -- real or ask it it is so.
You know the European what are your big point is that doctors right now are practicing defensive medicine are worried about the overall health industry in general right now -- action it's had -- -- you're you're touching on really what to me is the root problem and in the US spends more than twice as much per capita.
For health care is any other developed country in the world and I'm talking about Sweden.
What is that so different is our water differ under no it's that.
We have a -- way of practicing medicine.
Number one doctors do practice.
Defensiveness and why because we have a whole system of ambulance chasing lawyers.
Who anytime somebody has this outcome that isn't exactly the way they hoped they so.
Well if -- -- -- cover my you know watch so let's order another.
And and that's -- of the problem and not cost me so.
Your best guess is that not much time laughed out does this cut happened this proposed cut Medicare and that there will be some.
But I suspect there will be a cut and it will -- There the markets certainly bracing for it well thank you so much for joining us tonight to Q her former Aetna chairman and CEO Craig data have on serious topic my -- are.